Term deposit rates February 2025

Term deposit rates are starting to fall, but there's still time to lock in a fixed rate as high as 5% p.a.

1 - 10 of 156
Name 3 Mths p.a. 6 Mths p.a. 12 Mths p.a. 24 Mths p.a.
State Bank of India Term Deposit
State Bank of India logo
$250,000 min. deposit
3 Mths p.a.
5.15%
6 Mths p.a.
5.15%
12 Mths p.a.
5.05%
24 Mths p.a.
4.50%
More Info
Orange Credit Union Term Deposit
Orange Credit Union logo
$5,000 min. deposit
3 Mths p.a.
1.00%
6 Mths p.a.
1.25%
12 Mths p.a.
5.00%
24 Mths p.a.
4.00%
Illawarra Credit Union Term Deposit
Illawarra Credit Union logo
$1,000 min. deposit
3 Mths p.a.
4.90%
6 Mths p.a.
5.00%
12 Mths p.a.
4.90%
24 Mths p.a.
-
More Info
Heartland Bank Term Deposit
Heartland Bank logo
$25,000 min. deposit$1,000,000 max. deposit
3 Mths p.a.
4.45%
6 Mths p.a.
4.89%
12 Mths p.a.
4.90%
24 Mths p.a.
4.50%
More Info
LLL Term Deposit
LLL logo
$10,000 min. deposit
3 Mths p.a.
-
6 Mths p.a.
4.10%
12 Mths p.a.
4.85%
24 Mths p.a.
-
Dnister Ukrainian Credit Co-operative Term Deposit
Dnister logo
$1,000 min. deposit
3 Mths p.a.
3.80%
6 Mths p.a.
4.80%
12 Mths p.a.
4.85%
24 Mths p.a.
4.00%
Gateway Bank Term Deposit
Gateway Bank Ltd logo
$1,000 min. deposit$999,999 max. deposit
3 Mths p.a.
4.85%
6 Mths p.a.
4.95%
12 Mths p.a.
4.80%
24 Mths p.a.
1.60%
loading
Showing 10 of 156 results

What are the highest term deposit rates in the market right now?

If you're thinking about getting a term deposit now is a pretty good time. Interest rates are higher than they've been since 2011, and they've recently started to fall again.

Here are some of the market's highest 6 month term deposit rates:

  • 4.95% for 6 months with Judo Bank.
  • 5% for 6 months with Illawarra Credit Union
  • 5% for 6 months with MyState Bank
  • 4.85% for 6 months with Judo Bank
Market update by Alison Banney – Finder money editor

Best term deposit

Judo Bank Term Deposit

Judo Bank offers 4.7% for 12 months, 4.85% for 6 months and 4.6% for 24 months.

It was the Term deposit winner in the Finder Awards as it consistently had one of the best rates in the market throughout the judging period.

  • Why we like it. It offers some of the highest term deposit rates on the market right now, plus there's an extra 0.10% p.a. loyalty bonus for repeat terms.
  • What to look out for. You'll need to deposit at least $1,000.

Methodology: How Finder figures out the market's best term deposit rates

Money stuff is usually hard. But term deposits are pretty easy to figure out.

Here's how we find the best term deposits:

  1. Finder maintains a database of term deposits from across the market. Big banks, small banks, credit unions and everything in between.
  2. Every month we analyse these term deposit rates and find the highest rates on the market. We look at everything, not just products from Finder's commercial partners.
  3. We pick the highest rate for the most popular terms based on what customers search for. That's 12 months, 6 months, 3 months and 24 months.
  4. We don't consider a term deposit if it has a really low maximum deposit amount (meaning you can't put much money in) or a really high minimum deposit amount (meaning it's only for high rollers with deep pockets).

What is a term deposit?

A term deposit is a type of savings account that offers a fixed interest rate for a fixed period. But unlike a savings account, you lock the deposit away until the term deposit matures (that is, the end of the term).

The bank offers you a fixed interest rate. This won't change. The money you've deposited sits in the term deposit account earning interest. You just leave it there.

Once the term reaches maturity you can pull your initial deposit out plus the interest you've earned. You can also choose to reinvest a portion or all of the funds at the interest rate stated by your bank.

Term deposits are widely considered to be a safe, low-risk investment as, unlike savings accounts, they offer a guaranteed return through a fixed interest rate. Because your money is locked away, banks often offer a higher interest rate on some term deposits than they do on regular savings accounts. If you have a chunk of money you know you won't need for a while, a term deposit could be a good option. It removes the temptation to spend the money as you'll need to pay a fee if you wish to withdraw before the term is finished.

Term deposit versus savings account

The main difference between a savings account and a term deposit is the ability to access your money. The money in a savings account can be accessed whenever you need it, and there's no costs for withdrawing or depositing money. Term deposits are locked and will charge you if you need to withdraw your money early. So if you want easy access to your money, then a term deposit might not be right for you.

Another key difference is the interest rate; savings accounts have variable interest rates meaning they can change, while term deposits have fixed interest rates meaning the rate will not change until the term matures.

Example

You put aside $40,000 for a 12-month term deposit with a fixed rate of 5.00%. At the end of the term, the deposit matures and you receive the $40,000 back plus $2,000 interest.

How to compare term deposits

  • How long do you want? You can lock up your savings for anywhere between 3 months and 2 years. Some banks offer even longer terms. If you're saving for a holiday later in the year, a 12-month term is too long. If you're saving for a house, 3 months is likely too short.
  • Look for the highest interest rate. The higher the rate, the more you earn. Most banks offer the highest rates on 6 to 12 month terms.
  • Can you access the money early? In an emergency you may need to access your money fast. Some term deposits charge a fee for this, while others require a month's notice first. The amount of interest you get drops when you break the term deposit too.
  • Look at how the term deposit pays interest. Some term deposits pay interest on a monthly basis, annually or at maturity (when the term ends). Getting interest paid at maturity gets you a bigger interest payment.
  • Watch out for automatic rollover! Some term deposits automatically roll over at the end of the term, meaning your money will be locked up for a new term unless you withdraw it. This is a handy feature if you want to keep building interest. But not if you need the money when the term ends.
  • Deposit amounts. Check how much (or how little) the bank requires you to deposit. Some banks won't let you open a term deposit unless you have $25,000. Others start as low as $1,000. If you've got a big pile of cash check the maximum deposit amount.

Is a term deposit right for me?

Term deposits are a really easy way to earn interest on your savings. But many bank customers prefer a high interest savings account because they can often earn a bit more interest and add to their savings each month.

A term deposit is better suited to people who already have some money saved and are able to put it away and not touch it for a while.

Questions to ask before investing in a term deposit

  • How often interest is calculated is it compounded?
  • Do any ongoing fees apply?
  • What happens if you break the term of your deposit?
  • Can you withdraw a portion of the deposit without incurring a penalty?
  • How often will you receive statements?
  • Can you easily check on the balance in your account (for example with a mobile banking app)?
  • What happens to the deposit when it matures? For example, will it automatically roll over into another term deposit?

Pros of term deposits

  • Term deposits offer a fixed rate, so you can guarantee your exact return.
  • Term deposits have no set up fees or ongoing conditions you need to meet.
  • Term deposits are backed by the Australian government bank guarantee scheme up to $250,000.
  • You can choose between a large range of term deposit lengths, from 1 month to 5 years.

Cons of term deposits

  • Fixed rates mean you won't benefit from rising interest rates until your term matures.
  • Term deposits offer simple interest, not compound interest.
  • Many term deposits offer rates that are equal to or even lower than savings accounts.
  • It's harder to access money in a term deposit in an emergency. You might pay a fee, lose out on interest or have to wait 31 days.

A note on interest calculations

Term deposits usually pay simple interest. This is different to compound interest, which adds the interest you've earned to the account's total balance. You earn slightly more interest each month as the previous month's interest is compounded, or added to the account.

A term deposit only earns interest on the initial amount deposited.

Use a term deposit calculator to see how much you'll earn.

Finder survey: What term deposit features do Australians value most?

Response
Competitive interest rate66.82%
Low or no fees10%
The term duration6.82%
Australian Government Bank Deposit Guarantee6.36%
Online access5%
Auto renewal option3.18%
Other1.82%
Source: Finder survey by Pure Profile of 1113 Australians, December 2023

4 tips to get the best term deposit interest rate

  1. Consider smaller lenders, credit unions and digital banks. Don't just look at the Big Four.
  2. Compare term lengths: 6-month rates are often better than 3-month rates, and 24-month rates are often better again.
  3. Look for providers that offer extra interest as a loyalty bonus.
  4. Negotiate your rate with the bank to see if you can get a better deal.

Why you can trust our banking experts

helpObsessed with great rates - We nerd out over RBA decisions and monitor the market daily to make sure you get the best interest rates from banks big, small and digital (and the odd credit union).
freeCash in your own time frame - over 160 term deposit options tracked against 8 time frames from 3 months to 5 years. Dig into the data, or get the quick and easy editorial "best" if you're in a hurry.
independentNo BS - We don't have a call centre, we're not owned by a bank. Heck, you don't even need to give us your email. Our job is to get your money to work harder and let that sweet interest grow.
Richard Whitten's headshot

"I was helping a family member compare savings options recently. They started looking at high interest savings accounts, then term deposits from the Big Four banks and some smaller banks with slightly higher rates. In the end they chose a term deposit from a big bank. The rate was slightly lower than the best in market, but they liked the convenience of the bank's app (they were already a customer). They had considered a high interest savings account too, but the bonus rate had a few conditions they weren't confident they'd meet each month."

Money Editor

Frequently asked questions about term deposits

Looking for something else?

Richard Whitten's headshot
Serina Bird's headshot
To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten and reviewed by Serina Bird, a member of Finder's Editorial Review Board.
Alison Banney's headshot
Written by

Editorial Manager, Money

Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio

Alison's expertise
Alison has written 631 Finder guides across topics including:
  • Superannuation
  • Savings accounts, bank accounts and term deposits
  • Budgeting and money-saving hacks
  • Managing the cost of living

Ask a question

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms Of Service and Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

36 Responses

    Default Gravatar
    ElizabethMay 24, 2016

    I would like to know if or when the interest rates reach 0 or below 0, what happens to my term deposits in my bank.

      Default Gravatar
      ElizabethMay 25, 2016

      This is in relation to my previous question, and probably didn’t ask the right way.

      I would basically like to know as a “What if” scenario: If interest rates hit 0 and I have to renew my term deposit of say $20k in 7 days. Is it worth it, or what are my other options or concerns. Its not like I can keep that much money home. Interest rates keep going down and it doesn’t do much for trying to save, it seems the only people are benefiting are the ones spending money, not saving.

      AvatarFinder
      ShirleyMay 26, 2016Finder

      Hi Elizabeth,

      Thanks for your question.

      Assuming that interest rates hit zero and you were about to renew your term deposit, it is likely that you’ll get a rate that is close to zero.

      For this reason, if it does happen, you may want to consider investment alternatives, like shares, managed funds, bonds, etc

      If you would like to discuss your personal situation, we recommend that you speak to a financial adviser.

      AvatarFinder
      ClarizzaMay 25, 2016Finder

      Hi Elizabeth,

      As term deposit rates are generally fixed, your term deposit rate will remain the same even during the fixed period if interest rates reach 0. You can refer to our RBA cash rate page to keep up with ongoing announcements.

      Cheers,
      Clarizza

    Default Gravatar
    MaggieMay 19, 2016

    I have $56,000 to put in a term deposit .. Looking for the best rate

      AvatarFinder
      ShirleyMay 20, 2016Finder

      Hi Maggie,

      Thanks for your question.

      The best rate will actually depend on how long you intend to invest for. Please indicate the number of month in the table above and sort by “interest earned”.

Read more on Term Deposits

Go to site